The 2020 Deficit Is IDR 89.2 Trillion Lower Than Projection, Sri Mulyani: The State Budget Has Worked Extraordinary

Minister of Finance Sri Mulyani Indrawati. (Photo: Ministry of Finance)

JAKARTA - Minister of Finance Sri Mulyani said that the realization of the 2020 State Budget (APBN) can be maintained quite well. This indicator is shown by a budget deficit figure that is smaller than the assumptions set out in Presidential Decree 72 of 2020 concerning Posture Changes in the 2020 State Budget.

"The 2020 state budget deficit is recorded at IDR 956.3 trillion, this figure is IDR 82.9 trillion smaller than our projection in Perpres 72 which is IDR 1,039.2 trillion," said the Minister of Finance in an online presentation, Wednesday, January 6, 2020.

In his presentation, state revenue during 2020 was recorded at IDR 1,633.6 trillion. As for the expenditure side, it is known that it is worth IDR 2,589 trillion.

"If calculated by GDP (gross domestic product), you will find a deficit of 6.09 to GDP (gross domestic gross). However, this deficit is indeed much bigger than the initial law that we designed before the pandemic with a stipulated deficit of 1.76 percent or around Rp. 307.2 t, "he said.

In detail, the 2020 revenue sector is IDR 327 trillion lower than the 2019 State Budget, or IDR 599.6 trillion lower than the 2020 State Budget target.

"Furthermore, the realization of tax revenues is lower, as is the impact of the economic slowdown and the utilization of tax stimuli by the business world. Then, customs and excise are relatively better supported by excise tariff policies. " He said.

"Meanwhile, the realization of Non-Tax State Revenue (PNBP) exceeds the target which is supported by better commodity prices at the end of 2020," continued the Minister of Finance.

Meanwhile, state spending throughout 2020 increased by 12.2 percent on an annual basis, which was focused on supporting the handling of COVID-19 and its impact on the business world.

"This indeed shows that the 2020 State Budget is working extraordinary and indeed we must protect it in the future, because it is impossible to constantly experience pressure," said Sri Mulyani.